Over 90% of central banks trim duration as protection against inflation
Fewer institutions increased US Treasuries (18.75%), reduced exposure to unconventional assets (6.25%)
The vast majority of central banks reduced the maturity duration of their reserves portfolios in a bid to limit the impact of higher inflation. The Reserves Benchmarks 2022 find that 90% of the 33 participating central banks implemented this measure over the last year.
Lowering durations was much more used than other strategies employed to limit the fall in portfolio’s value. For instance, 18.75% of central banks report they have increased their allocations to US Treasuries. Just 6.25% of
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